GUANGZHOU, China, June 12, 2017 /PRNewswire/ -- Early 2017 data shows increased levels of trade collaboration between Germany and Guangzhou, China's most integral business center and key international trade hub. In the first quarter of 2017, the goods trading volume between Guangzhou and Germany soared to nearly $1.38 billion - up 62.5%. By the first quarter of 2017, 144 German companies had invested in Guangzhou, with an accumulative direct investment worth up to $330 million in contractual foreign capital and $220 million in actual capital.
These results come following strong momentum seen in 2016. Last year, the trade volume of registered goods between Guangzhou and Germany reached $4.11 billion - up 7.5% year-on-year and representing more than 3% of Guangzhou's total foreign trade volume. This figure included exports of $1.79 billion and imports of $2.33 billion, which grew 10% and 5.6% respectively. That same year, Guangzhou attracted seven new direct investment projects from Germany with a total contractual foreign investment of $4.25 million, and actual utilized value of $2.81 million.
The relationship between the two regions is a reciprocal bond, creating growth and development opportunities within each of their borders. Last year, six Guangzhou enterprises were established in Germany, with China's agreed-upon investment level reaching $43.92 million.
"Germany is already Guangzhou's fifth largest goods trading partner, and our relationship is only continuing to grow," said Guangzhou Vice Mayor Cai Chaolin. "I believe it is our advantages as a key international commercial and trade hub, our pro-business environment and our many opportunities across diverse industry sectors, that are attracting German corporations and enabling them to grow their businesses here. It is a new era of economic and trade cooperation for us both, and Guangzhou is proud to be at the forefront of this movement. I know there are many great things are still to come for us both."
This week Vice Mayor Cai Chaolin is making a visit to Munich to keynote a private forum on innovative approaches and open perspectives between Germany and Guangzhou. The event strives to create collaborative dialogue on prospects and models of advanced cooperation between Chinese and German enterprises. This week's gathering comes ahead of a major international forum taking place later this year in Guangzhou - The Global Fortune Forum in December - which will convene world leaders and the heads of global businesses to discuss the dynamic world of international commerce. The forum will also serve as an opportunity for CEOs of the Fortune Global 500 to meet and engage with China leaders from the public and private sectors.
A number of special guests will join the local forum in Munich, including a delegation from the People's Government of Guangzhou Municipality, the Guangzhou Municipal Commission of Commerce, the Guangzhou Development District and Guangzhou Shixing Investment, the Chinese Consular General to Munich, government officials from Munich, Alan Murray - the Chief Content Officer of Time Inc. and Fortune President, a special guest from the German Chamber of Commerce, senior representatives from Guangzhou corporations and senior representatives from various German Fortune Global 500 firms.
Many of the world's top 500 enterprises have set up stations in Guangzhou, with a broad investment portfolio ranging from electronics to automobiles, fine chemicals, manufacturing, intelligent equipment and beyond. Guangzhou's expansions in strategic new industries, such as information technology, artificial intelligence and biomedicine, also offer unique complements to Germany's era of Industry 4.0 and the pursuit of smart technology, automation and intelligent manufacturing initiatives. Guangzhou's technology research and development efforts have been even further bolstered by the establishment of the new Guangzhou National Innovation Demonstration Zone. This zone has been seamlessly integrated with existing regional science and technology parks to create a novel sci-tech corridor that positively impacts technological innovation in the region.
On a broader scale, Guangzhou is also continually enhancing its investment ecosystem, creating a business friendly environment that fosters growth and opportunity, raising the level of investment and trade facilitation, and streamlining administrative examinations and approval permissions. Guangzhou also continues to reduce the burden on enterprises, lowering operating costs and helping enterprises by reducing fees, setting up government funds and implementing policies to reduce insurance rates. In recent years, the city's talent introduction scheme has further enabled the region to attract more international talent.
Guangzhou's policy and service benefits, geographical advantages, focus on localization, flexibility, recruitment and stable, large-scale development have helped put Guangzhou at the top of Forbes' list of Best Cities for Business in China. Foreign-funded enterprises in Guangzhou enjoy high level of localization in terms of management and technical personnel, and many foreign enterprises have established research and development centers in the city's industrial parks, which help them to understand and effectively cater to regional markets.
As the capital city of Guangdong Province, Guangzhou is a comprehensive transportation hub with has a long history as a key point on the Maritime Silk Road. The city is not only home to a vast port, but also a rapidly expanding international airport, an immense railway infrastructure and a strong highway system. With this, Guangzhou is uniquely poised to support global openness and interconnectivity between China, Germany and the rest of the world.
Despite its successful growth and development, Guangzhou has maintained its beauty, culture and welcoming spirit, as peoples and enterprises from around the globe gather there to live and work. The city's temperate climate, lush environment, and top-class food and beverage offerings have made this an ideal place for corporations and talent to settle, succeed and grow their future. "It is our pleasure to have welcomed so many German partners into our great region and make Guangzhou their home, and we look forward to welcoming even more with open arms as we move forward," Vice Mayor Cai said.
SOURCE Guangzhou News Center